2019 BUCK STAYS THE HERE EDUCATION & ADVOCACY INITIATIVE

Understanding the economic impact of CTPF benefit payments on the State of and the City of EXECUTIVE SUMMARY

PURPOSE OF REPORT This report examines the impact that Chicago Teachers’ Pension Fund (CTPF) educators have outside the classroom, and the economic benefit pensions have on CTPF Pensions“ help the City of Chicago and the State of Illinois. support 15,000 jobs A study was conducted which examined CTPF members and their benefit payments by legislative district. Information from this study, contained in the first half of this in the State of Illinois report, is shown for legislators in the State of Illinois along with Aldermen in the City of Chicago. including 7,640 in The second half of this report includes additional information about CTPF’s the City of Chicago. members and priorities, and additional information on some of CTPF’s key investment initiatives.

RESULTS The study shows that about 84% of CTPF annuitants live in the State of Illinois, and ” about 50% of those annuitants live in the City of Chicago. CTPF benefit payments contribute: • $1.4 billion in direct payments to annuitants in the State of Illinois • $2.0 billion in total economic impact in the State of Illinois • $700 million in payments to annuitants in the City of Chicago • $1.0 billion in total economic impact on the City of Chicago Pension benefit payments and their ripple effect help support jobs including:

CTPF BOARD OF TRUSTEES • 15,000 jobs in the State of Illinois Jeffery Blackwell • 7,640 jobs in the City of Chicago President Mary Sharon Reilly CONCLUSIONS Vice President CTPF educators make an immeasurable impact on children: educating, nurturing, and helping them grow into productive citizens and future leaders. An educator’s Gregory Redfeairn impact extends far beyond the classroom – active and retired educators are also Financial Secretary consumers, taxpayers, and voters – who live and work primarily in Chicago and Jacquelyn Price Ward surrounding communities. CTPF pension payments create a positive impact on the Recording Secretary Illinois economy.

Robert F. “Bob” Bures RECOMMENDATIONS James Cavallero We call upon the legislators of the State of Illinois and Aldermen in the City of Chicago to examine the facts about pensions and to understand that CTPF Gervaise Clay annuitants value their benefits – but more importantly – spend their benefits Mark F. Furlong close to home. Tina Padilla Maria J. Rodriguez Jerry Travlos TERMS Gail D. Ward Active Member: individual who is currently paying into CTPF. Inactive Member: individual who has contributions on deposit with CTPF but is not currently paying into the system. Charles A. Burbridge Annuitant: member who receives a retirement, survivor, or disability benefit from CTPF. Undetermined: Illinois member for whom the legislative district or ward was undetermined. Executive Director

Sources: Bureau of Economic Analysis, United States Department of Commerce. 2 As of April 1, 2019 CTPF data on file as of January 1, 2019. CTPF MEMBERS AND ANNUITANTS BY DISTRICT

Active and Total Annual Total Economic Jobs Supported Illinois State Total District Inactive Annuitants Payments to Impact of by Benefit Senator Members Members Annuitants Benefit Payments Payments

1 Sen. Antonio Muñoz (D) 1,915 213 2,128 $ 11,389,354 $ 16,644,402 124

2 Sen. Omar Aquino (D) 2,765 272 3,037 14,297,141 20,893,842 156

3 Sen. Mattie Hunter (D) 2,058 711 2,769 41,652,227 60,870,565 455

4 Sen. Kimberly A. Lightford (D) 960 724 1,684 41,452,821 60,579,152 453

5 Sen. Patricia Van Pelt (D) 2,234 307 2,541 16,612,457 24,277,444 181

6 Sen. John J. Cullerton (D) 4,196 774 4,970 43,778,407 63,977,764 478

7 Sen. Heather A. Steans (D) 3,374 780 4,154 40,086,987 58,583,123 438

8 Sen. Ram Villivalam (D) 2,195 1,449 3,644 81,655,041 119,330,676 892

9 Sen. Laura Fine (D) 865 1,137 2,002 60,485,990 88,394,226 660

10 Sen. John G. Mulroe (D) 2,792 894 3,686 48,701,369 71,172,180 532

11 Sen. Martin A. Sandoval (D) 1,645 253 1,898 13,544,960 19,794,604 148

12 Sen. Steven M. Landek (D) 525 191 716 9,771,604 14,280,222 107

13 Sen. Robert Peters (D) 3,048 1,852 4,900 117,926,369 172,337,595 1,288

14 Sen. Emil Jones, III (D) 2,124 1,783 3,907 104,346,890 152,492,545 1,139

15 Sen. Napoleon Harris, III (D) 717 1,003 1,720 61,569,976 89,978,363 672

16 Sen. Jacqueline Y. Collins (D) 1,654 911 2,565 50,157,237 73,299,785 548

17 Sen. Elgie R. Sims, Jr. (D) 2,079 2,053 4,132 129,152,819 188,743,930 1,410

18 Sen. Bill Cunningham (D) 2,861 1,882 4,743 111,541,488 163,006,731 1,218

19 Sen. Michael E. Hastings (D) 712 1,176 1,888 73,817,846 107,877,400 806

20 Sen. Iris Y. Martinez (D) 3,072 369 3,441 18,865,362 27,569,840 206

21 Sen. Laura Ellman (D) 271 174 445 7,408,117 10,826,222 81

22 Sen. Cristina Castro (D) 92 73 165 3,485,877 5,094,261 38

23 Sen. Thomas Cullerton (D) 209 172 381 9,149,862 13,371,609 100

24 Sen. Suzanne Glowiak (D) 412 392 804 19,469,597 28,452,869 213

25 Sen. Jim Oberweis (R) 131 92 223 4,066,838 5,943,277 44

26 Sen. Dan McConchie (R) 174 198 372 8,163,290 11,929,833 89

27 Sen. Ann Gillespie (D) 406 393 799 18,563,969 27,129,384 203

28 Sen. Laura M. Murphy (D) 376 405 781 21,904,987 32,011,948 239

29 Sen. Julie A. Morrison (D) 435 618 1,053 29,798,462 43,547,472 325

30 Sen. Terry Link (D) 172 226 398 11,238,206 16,423,514 123

3 Active and Total Annual Total Economic Jobs Supported Illinois State Total District Inactive Annuitants Payments to Impact of by Benefit Senator Members Members Annuitants Benefit Payments Payments

31 Sen. Melinda Willden Bush (D) 116 103 219 $ 4,694,603 $ 6,860,693 51

32 Sen. Craig Wilcox (R) 76 92 168 4,614,493 6,743,621 50

33 Sen. Donald P. DeWitte (R) 144 187 331 9,005,655 13,160,864 98

34 Sen. Steven Stadelman (D) 29 24 53 924,522 1,351,096 10

35 Sen. Dave Syverson (R) 41 38 79 1,154,812 1,687,642 13

36 Sen. Neil Anderson (R) 15 8 23 254,108 371,353 3

37 Sen. Chuck Weaver (R) 14 14 28 520,567 760,756 6

38 Sen. Sue Rezin (R) 46 40 86 1,563,791 2,285,324 17

39 Sen. Don Harmon (D) 907 554 1,461 31,479,189 46,003,687 344

40 Sen. Toi W. Hutchinson (D) 295 524 819 31,600,142 46,180,447 345

41 Sen. John F. Curran (R) 467 510 977 28,712,395 41,960,295 314

42 Sen. Linda Holmes (D) 93 65 158 3,261,277 4,766,030 36

43 Sen. Pat McGuire (D) 153 103 256 5,403,869 7,897,214 59

44 Sen. William E. Brady, Jr. (R) 14 11 25 275,603 402,766 3

45 Sen. Brian W. Stewart (R) 22 48 70 2,021,179 2,953,751 22

46 Sen. David Koehler (D) 15 7 22 64,833 94,747 1

47 Sen. Jil Tracy (R) 8 10 18 277,515 405,560 3

48 Sen. Andy Manar (D) 5 5 10 95,676 139,821 1

49 Sen. Jennifer Bertino-Tarrant 203 185 388 8,992,215 13,141,223 98

50 Sen. Steve McClure (R) 9 27 36 878,773 1,284,239 10

51 Sen. (R) 12 9 21 390,038 570,002 4

52 Sen. Scott M. Bennett (D) 33 20 53 443,944 648,780 5

53 Sen. Jason A. Barickman (R) 14 13 27 448,264 655,093 5

54 Sen. Jason Plummer (R) 4 5 9 181,357 265,035 2

55 Sen. Dale A. Righter (R) 8 6 14 307,910 449,980 3

56 Sen. Rachelle Crowe (D) 5 7 12 291,775 426,400 3

57 Sen. Christopher Belt (D) 6 4 10 267,582 391,044 3

58 Sen. Paul Schimpf (R) 5 13 18 386,201 564,395 4

59 Sen. Dale Fowler (R) 3 14 17 619,550 905,410 7

Undetermined 348 200 548 10,696,504 15,631,871 117

Grand Total 47,579 24,323 71,902 $ 1,373,883,891 $ 2,007,793,918 15,001

4 CTPF MEMBERS AND ANNUITANTS BY ILLINOIS HOUSE DISTRICT

Jobs Active and Total Annual Total Economic Total Supported District Illinois State Representative Inactive Annuitants Payments to Impact of Members by Benefit Members Annuitants Benefit Payments Payments

1 Rep. Aaron M. Ortiz (D) 724 104 828 $ 5,224,441 $ 7,634,998 57 2 Rep. (D) 1,191 109 1,300 6,164,913 9,009,404 67 3 Rep. Luis Arroyo (D) 1,077 179 1,256 9,821,214 14,352,723 107 4 Rep. Delia C. Ramirez (D) 1,688 93 1,781 4,475,926 6,541,119 49 5 Rep. Lamont J. Robinson, Jr. (D) 1,208 489 1,697 28,604,562 41,802,707 312 6 Rep. Sonya M. Harper (D) 849 222 1,071 13,047,665 19,067,858 142 7 Rep. (D) 351 447 798 25,596,748 37,407,087 279 8 Rep. La Shawn K. Ford (D) 608 277 885 15,856,073 23,172,065 173 9 Rep. Arthur Turner (D) 1,101 161 1,262 8,352,265 12,205,999 91 10 Rep. Melissa Conyears- Ervin (D) 1,133 146 1,279 8,260,192 12,071,445 90 11 Rep. Ann M. Williams (D) 2,212 275 2,487 15,927,027 23,275,757 174 12 Rep. (D) 1,984 499 2,483 27,851,380 40,702,006 304 13 Rep. Gregory Harris (D) 1,924 315 2,239 16,579,565 24,229,376 181 14 Rep. Kelly M. Cassidy (D) 1,450 465 1,915 23,507,422 34,353,747 257 15 Rep. John C. D'Amico (D) 1,244 742 1,986 43,049,397 62,912,388 470 16 Rep. Yehiel M. Kalish (D) 951 707 1,658 38,605,644 56,418,288 422 17 Rep. Jennifer Gong-Gershowitz (D) 483 709 1,192 38,347,687 56,041,310 419 18 Rep. (D) 380 427 807 22,092,720 32,286,302 241 19 Rep. Robert Martwick (D) 1,667 435 2,102 23,136,332 33,811,436 253 20 Rep. Michael P. McAuliffe (R) 1,123 459 1,582 25,565,036 37,360,744 279 21 Rep. Celina Villanueva (D) 445 79 524 4,242,432 6,199,890 46 22 Rep. Michael J. Madigan (D) 1,200 174 1,374 9,302,527 13,594,713 102 23 Rep. Michael J. Zalewski (D) 208 103 311 5,140,621 7,512,504 56 24 Rep. (D) 317 88 405 4,630,982 6,767,718 51 25 Rep. Curtis J. Tarver, II (D) 1,602 1,100 2,702 70,831,044 103,512,488 773 26 Rep. Kambium Buckner (D) 1,446 752 2,198 47,095,325 68,825,108 514 27 Rep. (D) 1,452 1,128 2,580 65,524,584 95,757,627 715 28 Rep. (D) 672 655 1,327 38,822,306 56,734,918 424 29 Rep. Thaddeus Jones (D) 424 756 1,180 47,039,476 68,743,490 514 30 Rep. William Davis (D) 291 247 538 14,530,500 21,234,873 159 31 Rep. Mary E. Flowers (D) 908 600 1,508 33,709,958 49,263,733 368 32 Rep. André Thapedi (D) 746 311 1,057 16,447,278 24,036,052 180 33 Rep. Marcus C. Evans, Jr. (D) 1,124 1,027 2,151 65,073,221 95,098,005 711 34 Rep. Nicholas K. Smith (D) 954 1,025 1,979 64,070,023 93,631,932 700 35 Rep. (D) 1,967 1,022 2,989 58,935,213 86,127,920 644 36 Rep. Kelly M. Burke (D) 893 860 1,753 52,606,275 76,878,811 574 37 Rep. Margo McDermed (R) 232 274 506 16,127,697 23,569,017 176 38 Rep. Debbie Meyers-Martin (D) 480 902 1,382 57,690,149 84,308,383 630 39 Rep. (D) 1,422 182 1,604 9,110,406 13,313,948 99

5 Jobs Active and Total Annual Total Economic Illinois State Total Supported District Inactive Annuitants Payments to Impact of Representative Members by Benefit Members Annuitants Benefit Payments Payments

40 Rep. Jaime M. Andrade, Jr. (D) 1,650 187 1,837 $ 9,754,956 $ 14,255,892 107 41 Rep. (R) 159 83 242 3,799,798 5,553,025 41 42 Rep. (R) 112 91 203 3,608,319 5,273,197 39 43 Rep. (D) 22 11 33 446,388 652,352 5 44 Rep. (D) 70 62 132 3,039,489 4,441,909 33 45 Rep. (D) 98 105 203 5,641,013 8,243,776 62 46 Rep. (D) 111 66 177 3,440,125 5,027,399 38 47 Rep. Deanne M. Mazzochi (R) 242 237 479 12,354,619 18,055,040 135 48 Rep. (D) 170 155 325 7,114,978 10,397,829 78 49 Rep. Karina Villa (D) 75 51 126 2,216,410 3,239,062 24 50 Rep. Keith R. Wheeler (R) 56 41 97 1,850,428 2,704,215 20 51 Rep. Mary Edly-Allen (D) 110 151 261 6,172,215 9,020,074 67 52 Rep. David McSweeney (R) 64 47 111 1,991,076 2,909,758 22 53 Rep. Mark L. Walker (D) 244 272 516 13,266,899 19,388,246 145 54 Rep. Thomas Morrison (R) 162 121 283 5,297,070 7,741,138 58 55 Rep. Martin J. Moylan (D) 246 323 569 17,894,692 26,151,302 195 56 Rep. (D) 130 82 212 4,010,295 5,860,645 44 57 Rep. Jonathan Carroll (D) 165 285 450 13,876,737 20,279,463 152 58 Rep. Bob Morgan (D) 270 333 603 15,921,725 23,268,009 174 59 Rep. (D) 136 200 336 10,303,648 15,057,751 113 60 Rep. (D) 36 25 61 933,307 1,363,935 10 61 Rep. (D) 53 40 93 1,946,880 2,845,171 21 62 Rep. (D) 63 63 126 2,747,723 4,015,522 30 63 Rep. Steven Reick (R) 22 34 56 1,728,054 2,525,378 19 64 Rep. (R) 54 58 112 2,886,439 4,218,243 32 65 Rep. Daniel Ugaste (R) 73 134 207 6,658,048 9,730,071 73 66 Rep. (R) 71 53 124 2,347,607 3,430,792 26 67 Rep. Maurice A. West, II (D) 11 2 13 76,841 112,295 1 68 Rep. John M. Cabello (R) 18 22 40 847,681 1,238,801 9 69 Rep. (R) 12 9 21 224,684 328,353 2 70 Rep. (R) 29 29 58 930,128 1,359,289 10 71 Rep. Tony McCombie (R) 6 5 11 233,600 341,382 3 72 Rep. (D) 9 3 12 20,508 29,970 0 73 Rep. (R) 7 6 13 290,433 424,439 3 74 Rep. (R) 6 8 14 230,134 336,318 3 75 Rep. David A. Welter (R) 37 28 65 1,161,461 1,697,359 13 76 Rep. (D) 8 11 19 326,662 477,384 4 77 Rep. (D) 80 66 146 3,324,344 4,858,197 36 78 Rep. Camille Y. Lilly (D) 827 488 1,315 28,154,844 41,145,490 307 79 Rep. (R) 28 26 54 1,241,257 1,813,973 14 80 Rep. Anthony DeLuca (D) 267 498 765 30,358,884 44,366,474 331

6 Jobs Active and Total Annual Total Economic Illinois State Total Supported District Inactive Annuitants Payments to Impact of Representative Members by Benefit Members Annuitants Benefit Payments Payments

81 Rep. Anne Stava-Murray (D) 214 183 397 $ 10,434,190 $ 15,248,526 114 82 Rep. (R) 253 327 580 18,278,205 26,711,769 200 83 Rep. (D) 11 23 34 1,369,918 2,001,998 15 84 Rep. Stephanie A. Kifowit (D) 82 42 124 1,891,359 2,764,031 21 85 Rep. John Connor (D) 120 84 204 4,487,982 6,558,737 49 86 Rep. Lawrence Walsh, Jr. (D) 33 19 52 915,887 1,338,477 10 87 Rep. (R) 3 3 6 57,125 83,483 1 88 Rep. Keith P. Sommer (R) 11 8 19 218,478 319,283 2 89 Rep. Andrew S. Chesney (R) 9 39 48 1,695,125 2,477,255 19 90 Rep. (R) 13 9 22 326,054 476,495 4 91 Rep. Michael D. Unes (R) 7 2 9 17,189 25,120 0 92 Rep. Jehan Gordon-Booth (D) 8 5 13 47,645 69,628 1 93 Rep. Norine K. Hammond (R) 3 5 8 153,188 223,869 2 94 Rep. Randy E. Frese (R) 5 5 10 124,327 181,691 1 95 Rep. (R) 1 0 1 0 0 0 96 Rep. (D) 4 5 9 95,676 139,821 1 97 Rep. (R) 104 70 174 3,411,480 4,985,537 37 98 Rep. Natalie A. Manley (D) 99 115 214 5,580,735 8,155,686 61 99 Rep. Mike Murphy (R) 7 20 27 536,236 783,655 6 100 Rep. C.D. Davidsmeyer (R) 2 7 9 342,537 500,584 4 101 Rep. (R) 7 1 8 954 1,395 0 102 Rep. (R) 5 8 13 389,084 568,607 4 103 Rep. (D) 22 8 30 235,750 344,525 3 104 Rep. Michael T. Marron (R) 10 12 22 208,194 304,255 2 105 Rep. Dan Brady (R) 11 9 20 323,548 472,833 4 106 Rep. Thomas M. Bennett (R) 3 4 7 124,716 182,260 1 107 Rep. (R) 2 5 7 181,357 265,035 2 108 Rep. (R) 2 0 2 0 0 0 109 Rep. Darren Bailey (R) 1 4 5 194,480 284,213 2 110 Rep. Chris Miller (R) 7 2 9 113,430 165,767 1 111 Rep. (D) 2 3 5 169,491 247,695 2 112 Rep. Katie Stuart (D) 3 4 7 122,284 178,706 1 113 Rep. (D) 4 3 7 184,373 269,442 2 114 Rep. Latoya Greenwood (D) 2 1 3 83,209 121,602 1 115 Rep. (R) 5 12 17 307,166 448,893 3 116 Rep. Jerry Costello, II (D) 0 1 1 79,035 115,502 1 117 Rep. (R) 3 6 9 312,286 456,375 3 118 Rep. (R) 0 8 8 307,264 449,035 3 Undetermined 361 205 566 10,897,305 15,925,321 119

Grand Total 47,579 24,323 71,902 $ 1,373,883,891 $ 2,007,793,919 15,001

7 CTPF MEMBERS AND ANNUITANTS BY CHICAGO WARD*

Active and Total Annual Total Economic Jobs Supported City of Chicago Total Ward Inactive Annuitants Payments to Impact of by Benefit Alderman Members Members Annuitants Benefit Payments Payments

1 1,168 62 1,230 $ 3,071,890 $ 4,489,259 34

2 Brian Hopkins 1,076 306 1,382 18,449,039 26,961,425 201

3 475 144 619 8,392,792 12,265,226 92

4 SophiaKing 1,084 714 1,798 48,290,789 70,572,159 527

5 659 487 1,146 29,916,687 43,720,246 327

6 754 730 1,484 45,066,466 65,860,133 492

7 545 464 1,009 29,286,279 42,798,968 320

8 Michelle Harris 856 877 1,733 56,710,144 82,876,205 619

9 506 363 869 21,003,244 30,694,141 229

10 Susan Garza 524 106 630 5,620,317 8,213,532 61

11 Patrick Thompson 719 89 808 4,972,105 7,266,234 54

12 218 20 238 1,014,466 1,482,541 11

13 Marty Quinn 695 114 809 5,920,962 8,652,895 65

14 Edward Burke 272 36 308 1,906,003 2,785,432 21

15 196 55 251 2,752,628 4,022,690 30

16 153 43 196 2,234,195 3,265,053 24

17 David Moore 239 128 367 6,250,207 9,134,052 68

18 936 484 1,420 29,188,480 42,656,045 319

19 Matthew O'Shea 2,222 1,029 3,251 61,287,184 89,565,091 669

20 351 91 442 4,780,384 6,986,053 52

21 756 482 1,238 28,363,635 41,450,616 310

22 Michael Rodriquez 253 19 272 844,732 1,234,491 9

23 972 122 1,094 6,442,697 9,415,357 70

24 Michael Scott 252 65 317 3,301,290 4,824,506 36

25 Byron Sigcho-Lopez 782 66 848 3,664,532 5,355,347 40

26 Roberto Maldonando 778 44 822 1,886,825 2,757,406 21

27 Walter Burnett 520 55 575 3,724,276 5,442,657 41

28 222 60 282 3,529,797 5,158,446 39

29 340 127 467 6,666,493 9,742,412 73

30 471 68 539 3,802,686 5,557,246 42 *The list of Aldermen is based on information available as of April 17, 2019. The list will be updated with certified election results when available. 8 Active and Total Annual Total Economic Jobs Supported City of Chicago Total Ward Inactive Annuitants Payments to Impact of by Benefit Alderman Members Members Annuitants Benefit Payments Payments

31 Felix Cardona, Jr. 391 77 468 $ 3,984,811 $ 5,823,403 44

32 1,281 106 1,387 6,017,021 8,793,275 66

33 Rossana Sanchez 871 86 957 4,177,877 6,105,550 46

34 644 499 1,143 29,383,223 42,940,643 321

35 Carlos Ramirez-Rosa 934 80 1,014 4,302,450 6,287,600 47

36 1,000 227 1,227 13,241,088 19,350,526 145

37 280 88 368 4,901,371 7,162,864 54

38 910 215 1,125 11,407,884 16,671,482 125

39 877 325 1,202 18,727,110 27,367,799 204

40 876 187 1,063 10,378,999 15,167,870 113

41 1,341 412 1,753 21,892,773 31,994,098 239

42 Brendan Reilly 746 335 1,081 19,921,219 29,112,869 218

43 Michele Smith 849 187 1,036 10,673,353 15,598,038 117

44 1,185 209 1,394 11,477,996 16,773,944 125

45 Jim Gardiner 1,058 287 1,345 15,448,618 22,576,610 169

46 903 170 1,073 9,233,817 13,494,301 101

47 1,359 174 1,533 9,743,387 14,238,986 106

48 796 299 1,095 15,667,413 22,896,357 171

49 648 170 818 7,925,908 11,582,921 87

50 682 336 1,018 18,104,653 26,458,140 198

Undetermined 307 82 389 4,706,378 6,877,901 51

36,932 12,001 48,933 $ 699,658,572 $ 1,022,481,038 7,640

*The list of Aldermen is based on information available as of April 17, 2019. The list will be updated with certified election results when available.

CTPF MEMBERS AND ANNUITANTS

9 UNDERSTANDING THE EQUATION: CTPF’S ECONOMIC IMPACT

FUND DEMOGRAPHICS REGION: ILLINOIS, A majority of CTPF’s members, about 90% of all active members and INDUSTRY, HOUSEHOLDS annuitants (including retirees, survivors, and members with disabilities CTPF data used in this report: receiving pensions), live in the State of Illinois. Approximately 84% of $1.4 billion in payments to CTPF’s annuitants live in Illinois and about half of those members reside 24,323 annuitants residing in the City of Chicago. CTPF annuitants spend their pensions close to in Illinois home, benefiting the state and local economies. Total impact is based on CTPF benefit payments multiplied by CALCULATING CTPF’S TOTAL ECONOMIC IMPACT the U.S. Bureau of Economic Economic activity includes CTPF benefit payments and all additional Analysis total output multiplier economic activity in Illinois generated by those payments. Economic of 1.4614: multipliers measure the direct and indirect effect of payments made to CTPF annuitants. Multipliers are supplied by the U.S. Department of 1.4614 Commerce, Bureau of Economic Analysis. x 1.373 billion billion in economic JOB CREATION $2.0 impact in Illinois Money spent in Illinois translates into jobs for Illinois residents. Multipliers are supplied by the U.S. Department of Commerce, Bureau of 1.4614 x 700 million Economic Analysis. Multipliers are based on statewide economic activity. Individually calculated multipliers by district are not available, billion in economic $1.0 impact in Chicago so economic impact is intended to be illustrative.

CASE STUDY: ILLINOIS INVESTMENTS BEYOND THE CLASSROOM

Educators make an immeasurable impact on children: The Board’s current policy targets are: educating, nurturing, and helping them grow into productive citizens and future leaders. CTPF members • Global equity at 66.0% (comprised of domestic equity at 30.5%,international equity make an impact that extend far beyond the classroom – at 30.5%, and private equity at 5.0%), active and retired educators are also consumers, taxpayers, voters, and investors – who live and work primarily in • Fixed income at 23.0%, and Chicago and surrounding communities. • Real assets at 11.0% (comprised of private CTPF members and the investments they hold impact real estate at 9.0% and infrastructure at 2.0%). the Illinois economy. CTPF holds more than $11.1 billion in assets on behalf of its members. The CTPF Board of Real estate investments are an important part of the Fund’s Trustees (the Board) set the Fund’s investment policy, portfolio, and the Board prioritizes investments which operating under the prudent person rule and with contribute to the growth of the economy of the State of investment authority granted by the Illinois Compiled Illinois. When all other factors are equal, the investment Statutes, Chapter 40, Act 5, Articles 1 and 17. The Board team selects Illinois-based managers and projects. approves an asset allocation program designed to obtain the highest expected return on investments with an acceptable level of risk.

CTPF MEMBERS and the INVESTMENTS “ they hold IMPACT the ILLINOIS ECONOMY. 10 ” INVESTING IN ILLINOIS Real estate investments form about 9% of the asset mix and help diversify CTPF’s overall investments and play a vital role in optimizing PENSIONS portfolios. As of June 30, 2018, CTPF employed 17 Illinois-based MATTER investment managers who managed assets with a market value of $3.3 billion. These assets represented 30.6% of CTPF’s investment IT’S TIME TO UNDERSTAND THE portfolio. CTPF has historically demonstrated its commitment to BIG PICTURE WHEN WE LOOK AT promoting economic activity in Illinois via our holdings and our use of PENSIONS. A pension is an efficient Illinois-based external managers and broker/dealers. CTPF monitors our vehicle for providing retirement Illinois managed assets monthly and routinely looks for opportunities security. The National Institute on to prudently increase our holdings in Illinois, while maintaining a Retirement Security estimates that a diversified portfolio. pension plan can provide benefits at These investments provide jobs, house families, offer space for vital about half the cost associated with a businesses, and contribute to the vibrancy of a diverse city. CTPF holds 401(k) plan. ownership stakes in many properties throughout Chicago and the State, many of which are familiar landmarks. CTPF BENEFITS ARE EARNED DURING A LIFETIME OF SERVICE. HIDING IN PLAIN SIGHT: CTPF members contribute 9% of every ILLINOIS REAL ESTATE paycheck to their pension. INVESTMENTS CTPF MEMBERS DEPEND ON PENSIONS. CTPF members have The following iconic Chicago properties are been contributing to pensions since examples of investments that CTPF has made 1895, more than 40 years before through various managers in real estate Social Security was established. throughout Chicago. CTPF members do not receive Social Aqua Tower Security retirement payments and rely 225 N. Columbus Drive on pensions for financial security. An aesthetically unique and functional 82-story mixed-use residential skyscraper CTPF MEMBERS ARE SPENDERS. in the Lakeshore East development in downtown Chicago. Designed by a team Every dollar paid out in pension led by Jeanne Gang of Studio Gang benefits generates $1.46 in economic Architects, Aqua Tower combines a hotel, activity for the State – a solid return in offices, rental apartments, condominiums, and parking, along with one of Chicago’s any economy. But in tough economic largest green roofs. times, pensions matter more – because pensioners with guaranteed The Gogo Building income can continue to spend. 111 N. Canal Street A leading global aero-communications CTPF MEMBERS DRIVE THE service provider, the Gogo Building has ECONOMY. Pension benefits are become a hub for companies looking to tap into the city’s extensive talent returned to Illinois and generate pipeline and its thriving tech scene. additional revenue through the ripple Other high-profile tenants include effect on the economy. Pension Potbelly sandwich chain, Twitter Inc. and Uber Technologies. revenue helps generate more than 15,000 jobs statewide with 7,640 jobs in Chicago. Prudential Roosevelt Collection 150 W. Roosevelt Road A mixed use South Loop development which includes apartments and ~326,000 square feet of dynamic retail space. The CTPF PENSIONS Roosevelt Collection features a vibrant, MATTER to Chicago kid-friendly open-air plaza and is home and Illinois. to premium retailers, restaurants and unique skyline views – an ideal spot to shop, relax, and enjoy Chicago. 11 TE C STAS CTPF S IPCT ERE TS CSS

OF CTPF ANNITANTS STAY IN ILLINOIS, WIT AOT 84% ALF OF TOS MMRS RSIDING IN CICAGO

ILLINOISILLINOIS

$1.4 BILLION MAD IN DIRCT PNSION PAYMNTS TO ANNITANTS LIVING IN ILLINOIS STS I... 15,000 JOBS $2.0 BILLION SPPORTD IN TOTAL CONOMIC IMPACT IN ILLINOIS IN ILLINOIS

CHICAGOCHICAGO Trust. Integrity. Stability.

$700 MILLION 203 North LaSalle Street Suite 2600 Chicago IL, 606011231 www.ctpf.org IN DIRCT PNSION PAYMNTS MAD Members 312.641.4464 General 312.641.1400 Fax 312.641.7185 TO ANNITANTS LIVING IN CICAGO STS I... 7,640 $1.0 BILLION JOBS SPPORTD IN TOTAL CONOMIC IMPACT NOTE CTPF CALCLATS STIMATS OF TOTAL CONOMIC IN CICAGO IMPACT AND JOS SPPORTD Y MLTIPLYING NFIT IN CICAGO PAYMNTS Y TOTAL OTPT MLTIPLIRS SPPLID Y | T .S. DPARTMNT OF COMMRC, RA OF CONOMIC ANALYSIS.

203 North LaSalle Street, Suite 2600 | Chicago, Illinois 606011231 | T 312.641.4464 | F 312.641.7185 | www.ctpf.org | memberservicesctpf.org